Reverse Yankee Supply Will Come Mostly From Hyperscalers

(MENAFN- ING)

The key question for 2027 is whether Reverse Yankee supply can remain as convincing as it has been in recent years. The economics for US issuers looking to fund in euros and swap proceeds back into dollars have deteriorated markedly, with much of the historical funding advantage having evaporated. In many cases, the maths is now far less compelling on an issuer-by-issuer basis.

However, the hyperscaler story remains difficult to ignore. We expect hyperscalers alone to account for around €60bn of Reverse Yankee issuance in 2027, up sharply from the roughly €31bn issued in euros during 2026.

As a result, we continue to expect elevated Reverse Yankee supply, albeit increasingly concentrated within the technology sector. Overall, we forecast another €100bn of Reverse Yankee issuance in 2027, matching that of 2026.

€100bn

Reverse Yankee supply forecast for 2027

Importantly, this leaves only around €40bn of issuance from non-hyperscaler borrowers, a notable decline on what we saw in 2026. The decline reflects the reduced cost-saving incentive for US corporates to issue in euros and swap back to dollars.

XCCY & USD EUR spread differential 10yr Source: ING, IHS Markit

">

Reverse Yankee issuance has historically been closely linked to both USD and EUR corporate supply. On average, it has represented around 10-11% of US corporate issuance and 20-21% of EUR corporate issuance. For 2027, this increases marginally up to 12% and 23% respectively on the back of the larger hyperscaler and tech issuance. This also suggests that continued strength in overall corporate funding volumes should still provide a supportive backdrop, even if the currency economics become less attractive.

Reverse Yankee supply Source: ING, Dealogic

">

MENAFN21102026000222011065ID1111845829